Memphis is near the top of the list when it comes to U.S. housing markets most conducive to turning a profit on a ‘flipped’ home. New data from real estate market researcher RealtyTrac named Memphis No. 5 on its list of the top 25 most profitable markets for flipping homes. The final list was winnowed down from more than 600 metropolitan areas across the country; a 13 percent increase in home values from first quarter 2012 to first quarter 2013 helped the Bluff City get in near the top of the list.
According to RealtyTrac research, there were 1,331 single-family flips — defined as a home selling within six months of the same property being sold previously — in Memphis. The list ranked markets based gross profit as a percentage of the original purchase price. In Memphis, that percentage was 42 percent, or an average gross profit of $28,552 above the average initial purchase price. Nashville appeared on the list at No. 8. The No. 1 market was Orlando, Fla., with flippers making an average profit of 63 percent, followed by Las Vegas, Phoenix and Tampa.